Bosnia and Herzegovina Employment Guide

Bosnia and Herzegovina Employment Guide

Bosnia and Herzegovina is located in Southeast Europe, in the central part of the Balkan Peninsula. It borders Croatia to the north, Serbia to the east, and Montenegro to the south. With a population of approximately 3.3 million, its economy is dominated by services, industry, and agriculture, while tourism has gradually developed in recent years. Sarajevo, the capital, serves as the political, economic, and cultural center. The country’s labor laws require employment contracts to be in writing, with a standard 40-hour workweek. Employers are obligated to guarantee the minimum wage, social insurance, and paid leave. Dismissals must follow legal procedures and involve compensation payments to employees. Its labor relations system is relatively stable, and it has a certain appeal to foreign-funded enterprises.

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Currency

Convertible Mark (BAM)

Capital

Sarajevo

Official language

Bosnian, Croatian, and Serbian

Salary Cycle

Monthly

Our Employment Guide in Bosnia and Herzegovina

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Paid Time Off Policy in Bosnia and Herzegovina

Both full-time and part-time employees in Bosnia and Herzegovina are entitled to 20 working days of paid time off (PTO) annually. This PTO accrues at a rate of 1.6 days per month. Employees become eligible for 6 days of PTO after completing their first 6 months of employment.

Public and Religious Holidays

Bosnia and Herzegovina observes 2 national holidays (New Year's Day and Labor Day) along with 8 regional holidays that vary based on the employee's geographic location. Additionally, all citizens have the right to take PTO for religious holidays according to their faith (Orthodox, Catholic, or Muslim).

National Holidays

  • New Year's Day
  • Labor Day
  • Easter Monday (for Orthodox and Catholic populations)
  • Christmas (for Orthodox and Catholic populations)
  • Eid al-Fitr (for Muslim population)

Regional Holidays by Entity

EntityHolidays
Republika SrpskaOrthodox Christmas, Republic Day, Orthodox New Year, Orthodox Good Friday, Easter Monday
Federation of Bosnia and HerzegovinaLabor Day, Independence Day, Statehood Day
Brčko DistrictDistrict Day

Following the Sejdić-Finci court ruling, the Jewish community also has the right to paid leave for religious holidays, though this has not yet been formally legislated. Employers must provide up to 4 working days annually for religious or traditional needs, with 2 days being paid. When public holidays fall on a Sunday, the following Monday becomes a non-working day.

Practical Implications for International Employers

Companies like SailGlobal operating in Bosnia and Herzegovina must carefully navigate this complex holiday structure. The regional variations require entity-specific holiday calendars, and religious diversity necessitates flexible scheduling. For example, an employer in Sarajevo might need to accommodate Muslim employees during Ramadan while simultaneously recognizing Catholic holidays for other staff members.

Best practices include maintaining detailed records of employee religious affiliations (with consent) and creating a transparent PTO accrual system. Many multinational corporations implement digital HR platforms that automatically calculate regional holidays and religious observances based on employee location and declared beliefs.

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